Browsing by Author "Aguilera Letelier, Ricardo Marcelo"

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    The effect of Economic Openness in the Transmission of Permanent Monetary Shocks
    (2024) Aguilera Letelier, Ricardo Marcelo; Vicondoa Ramos, Alejandro Martin; Pontificia Universidad Católica de Chile. Instituto de Economía
    In recent years, the debate has been reexamined on whether or not it is advisable to change inflation targets. In the midst of this debate, we believe that it is important to better understand how the idiosyncratic characteristics of each country, such as its degree of openness, affect the transmission of permanent monetary shocks, such as the change in the inflation target. In this work, we present theoretical and empirical evidence for the impact of economic openness through the nominal exchange rate on the transmission of permanent monetary shock. In particular, we claim that as economic openness increases, the transmission becomes more Neo-Fisherian.